Dillistone Share Discussion Threads

[wigwammer] 08/5/2018 09:25

Massive potential on a high gross margin product - nothing in the price for it.. "Our GatedTalent product, launched in October 2017, has been very well received with a growth trajectory that, we believe, will lead to it becoming the dominant product in its market space within a year."

[likitorma] 07/5/2018 22:04

The price has gone from above 100p to low 80s, so well on. Our way to 60p. Reckon we will break the low 80s support this week.

[zoolook] 07/5/2018 21:14

Gonzela=likitorma

Both new posters started posting start of March. Both banging on about 60p

Try harder

[likitorma] 07/5/2018 20:19

The rise from 60s has been purely due to Gated Talent. Were it to disappoint even in the slightest way, the price will go well below 60p as the market tends to overshoot in both directions. Listening to the interview, we may not hear back until July, when they expect majority of messages to have been sent. There is also the possibility of a placing depending on how Gated Talent is received.
Sells going below bid, which is worrying. Should this break the 82p support, this will drop very quickly.

[wigwammer] 04/5/2018 11:32

I agree mw, we will see whether Gated Talent is likely to fly over the next few months - see quite below. Either way - looking at the valuation versus history, there is very little built into the price for it. If it disappoints then smallish pull back. If GT looks set to take off - could see the shares double or more in short order.... "we believe that the vast majority of our clients will not send messages before May, with a number of firms likely to complete the process in June or even July"

[likitorma] 03/5/2018 05:52

Getting closer to the 60p. Sells going through below ask.

[mw8156] 02/5/2018 15:18

have to wait til after 25 May to see whether this will rise or fall...

[wigwammer] 02/5/2018 13:26

Lol. So dramatic! Who do you think is listening? You, me and that tramp over there supping from a paper bag. If it drops to your circa 60s target I'll probably add more. Happy days :)

[gonzela] 02/5/2018 12:20

Massive sells going through under the bid. Drop is imminent.

[tentrader] 27/4/2018 15:35

Results update with Jason Starr - CEO -

Results webinar at 2pm on Wednesday 2 May - to register please go to hxxps://register.gotowebinar.com/register/6953940844866187265

[wigwammer] 27/4/2018 09:14

Gonzela. Take a look at the valuation history of DSG, read the statement, consider the order book, think about the incremental cash conversion on rising 80%+ gross margin sales, consider the optionality of GT, the ungeared balance sheet. Truly - there are more interesting short plays out there.

[zoolook] 27/4/2018 09:12

gonzela,

I see you are a new poster and most of your posts have been about dsg and negative. It sounds like you are trying to help talk it down to 60p to buy in.

If you have an analysis that points to 60p being fair value that would be interesting

[gonzela] 27/4/2018 09:08

Buying in the 60s provides good risk reward and well done to you for buying at the time. Anyone buying now is exposing themselves to a lot of risk. This could easily go down to 60p esp with the low volume that !over it from 60p to 90p.

[wigwammer] 27/4/2018 09:04

Having built my position in the 60s I'm happy with the update. Strong order book and record recurring revenue implies improved cash conversion this year to fund growth. Their confidence is underlined by a reinstated dividend and a positive net cash position. I agree that Gated Talent could go one way or the other - but looking at the valuation history you are paying nothing for it - free optionality :)

[gonzela] 27/4/2018 09:00

The market cap is well overvalued at 18million and they have lost a client which was worth 600k income to them per year:

"
As anticipated in our Interim statement, a SaaS contract with a major client expired in early 2018. This contract, with a client using a legacy product acquired as a result of an acquisition made several years ago, was worth in the region of £600,000 per annum in contribution terms to the Group"

[zoolook] 27/4/2018 08:29

Yes. I agree that with the Gated Talent innovation there is no need for them to pay a dividend as the investment case has changed from being a steady-away niche software business to a growth business which could prove to be a damp squib or shoot the lights out. Think this may track sideways until further updates on conversions. If it drops to 60p as you declare that would be a further buying opportunity for me

[gonzela] 27/4/2018 08:18

They are raising money, paying ridiculous interest rates and then paying out dividend:

"The Board has raised £0.400m from the Directors and PDMRs (person discharging managerial responsibilities) in the form of a convertible loan note to provide continued funding for GatedTalent. The loan notes carry an interest rate of 8.15% and a conversion price of 71.6p. The loan note has a 3-year duration but with various rights for early conversion or repayment. "

[wigwammer] 27/4/2018 08:15

"Our GatedTalent product, launched in October 2017, has been very well received with a growth trajectory that, we believe, will lead to it becoming the dominant product in its market space within a year."

[wigwammer] 27/4/2018 08:14

"This confidence in the future allows us to recommend a final dividend of 0.5p and we anticipate reporting further positive progress as the year progresses."

[gonzela] 27/4/2018 08:11

Company is cash flow negative as stated below:

"Adjusted operating profit dropped significantly to £0.309m, in part due to the investment made in GatedTalent and in part due to a decline in new licence sales. Excluding our GatedTalent investment, the Group remained cash generative across this year."

Let's see when they will have to raise money.

[zoolook] 27/4/2018 08:08

Finals out:



Some interesting detail on Gated Talent conversion of Exec:

“We are seeing significant variances in invitation conversion rates between clients. Some firms are seeing in excess of 8% of invitations leading to Profiles; others are seeing a fraction of 1% converting. What is apparent from the Profiles that have been created so far, however, is that our executive talent pool will be both senior and diverse. Currently, the three most common Job Titles for our Executives are "CEO", "Managing Director" and "General Manager". We have onboarded profiles from executives in 75 countries. A heatmap with further information on profile data is available at www.gatedtalent.com/metrics/.”

I expect that the Execs converting will largely be those between jobs and have more time on their hands. The heat map is just geographical. Clearly gaining traction and the potential is there but not yet proven as transformational

[wigwammer] 27/4/2018 08:02

"The current trading performance of the Group is positive with orders for both Dillistone Systems and Voyager Software ahead of the same period in 2017 - with the former more than 25% up on the same period in 2017 and the latter having one of the best quarters for new business orders in its history."

[gonzela] 23/4/2018 21:12

This is the week when results arrive and this starts moving down to 60pence.

[gonzela] 20/3/2018 12:58

Further down it goes. Won't be surprised to see this taken down to 60p.

[wigwammer] 19/3/2018 09:31

All the best to you too :)